Bonds recover, call rate ends higher

Mumbai: The government securities (G-Sec) recovered on fresh buying support from banks and corporates, while the call money rates ended higher at the overnight call money market here today owing to good demand from borrowing banks.

The 7.16 per cent government security maturing in 2023 climbed to Rs 88.66 from Rs 88.45 previously, while its yield edged down to 8.95 per cent from 8.99 per cent.

The 8.28 per cent government security maturing in 2027 gained to Rs 93.40 from Rs 93.20, while its yield moved down to 9.13 per cent from 9.15 per cent.

The 7.28 per cent government security maturing in 2019 rose to Rs 92.77 from Rs 92.70, while its yield inched down to 8.96 per cent from 8.97 per cent.

The 8.12 per cent government security maturing in 2020, the 8.20 per cent government security maturing in 2025 and the 8.32 per cent government security maturing in 2032 were also quoted higher at Rs 95.35, Rs 92.60 and Rs 91.54, respectively.

The Overnight call money rate ended higher at 8.75 per cent from 8.50 per cent yesterday. It moved in a range of 9.00 per cent and 8.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 406.04 billion in 64-bids at the one-day repo auction at a fixed rate of 7.75 per cent, while its sold securities worth Rs 0.30 billion from 2-bids at the 1-day reverse repo auction at a fixed rate of 6.75 per cent in the evening auction.